69) Which of the following constitutes insider trading? A) an employee makes a profit by personally purchasing shares of the corporation prior to public release of favorable information B) a manager purchases all shares of a corporation available to the public C) a director purchases enough shares of a public company to gain a majority stake in its management D) an employee sells his shares of the company to another employee without notice to the company Answer: A 70) A(n) ________ is a person who discloses material nonpublic information to another person. 71) The ________ imposes liability under Section 10(b) and Rule 10b-5 on an outsider who misappropriates information about a company, in violation of his or her fiduciary duty, and then trades in the securities of that company.
72) Who among the following is considered a statutory insider? 73) Which of the following best defines short-swing profits? A) profits that are made by an insider by selling shares of the corporation prior to the public disclosure of unfavorable information B) profits that are made by an insider by personally purchasing shares of the corporation prior to public release of favorable information C) profits that are made by a statutory insider on trades involving equity securities of their corporation that occur within six months of each other D) profits that are made by a tippee by personally purchasing shares of the corporation prior to or post public release of favorable information Answer: C 74) ________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation. 75) The Dodd-Frank Wall Street Reform and Consumer Protection Act imposes regulations on ________.
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